The relationship between Gerard Thomas and DPI started in 1987. There were three separate contracts that governed the relationship between Gerard Thomas and DPI signed in 1987, 1990 and 2002. S&T Daewoo purchased the stock of DPI in 2006 and immediately sought to reduce the payment of commissions owed to Gerard Thomas pursuant to the written contracts. Although the parties engaged in negotiations, they never reached a new agreement.

Shortly after S&T Daewoo purchased the stock of DPI, it unilaterally reduced the commission payments by approximately 50 percent. Thereafter, Gerard Thomas applied some sales dollars belonging to S&T Daewoo, which rightfully came into Gerard Thomas’ possession, to the outstanding commissions owed to Gerard Thomas by S&T Daewoo. Thereafter, S&T Daewoo stopped all further commission payments.

The arbitration panel awarded plaintiff $8,496,255, broken down as $1,996,255 for past due commissions and $6.5 million for future commissions.

Type of action: Unpaid commissions

Name of case: Gerard Thomas Co., Inc. v. S&T Daewoo Co., Ltd.

Court/Case no./Date: U.S. District Court, Eastern District of Michigan; 09-10718; Oct. 26, 2010